Australian Strategic Materials (ASX:ASM) is seeking to transform its ‘world-class’ Dubbo Project into a producer of clean energy transition minerals following commencement of engineering, procurement and definition work (EPCD) work partnership with Hyundai Engineering Co (HEC).
Under the EPCD, HEC will be allowed to commence the EPCD work in stages for the company’s subsidiary Australian Strategic Materials Holdings (ASMH), in relation to the Dubbo Project in NSW.
The emerging critical metals producer notes that work highlighted within the EPCD will be divided into 3 stages, with stage one establishing front-end engineering and design activities and progressing with standards development for $5 million.
Stage two and three will work to further develop engineering design to allow for identification and selection of technology requirements for $7 million and allow HEC to deliver an open-ended book estimate to implement an engineer, procure and contract (EPC) contract for $34.7 million respectively.
Speaking to Mining.com.au, Chief Executive Officer (CEO) Rowena Smith says ASM is delighted to be working with HEC to deliver a fully costed EPC offer for its Dubbo project and that working with HEC represents the company’s aim of working with businesses of the highest calibre.
“A key focus for ASM is partnering with businesses of the highest calibre to deliver on the company’s objectives and HEC is one of the world’s leading EPC firms. ASM has issued HEC with a notice to proceed for stage one of the EPCD work and look forward to working with HEC as they deliver each milestone towards a fully costed EPC offer. This is an important step as ASM progresses the Dubbo Project towards final investment decision.
ASM is building an integrated mine to metals business that will provide quality oxides and high-tech metals that are critical for the clean energy transition.
“ASM has issued HEC with a notice to proceed for stage one of the EPCD work and look forward to working with HEC as they deliver each milestone towards a fully costed EPC offer”
The Dubbo Project is a world-class deposit that will produce NdPr oxide, Terbium Oxide, Dysprosium oxide, as well as Zirconia, Hafnia and Ferro Niobium. It is targeting best in class environmental performance, through the integration of renewable energy, efficient water use, and its integration with the local community.
Over the long-term, the materials produced from the Dubbo Project will be used for refining into critical metals at ASM’s proposed metals plants, the first of which is in South Korea.
The Korean Metals Plant, officially opened in May 2022, is ramping up commercial production and can be expanded to up to 5200tpa, with multiple product lines. ASM is currently securing the long-term supply of rare earth oxides from partners like the Vietnam Rare Earth Company to ensure certainty of the feedstock required for ASM’s Korean Metals Plant, before the Dubbo Project commences operation.”
The company also notes that it has issued HEC with a notice to proceed with stage one and is expected to be complete by mid-2023.
In addition, the overall contract is currently anticipated to be complete within the second half of the calendar year of 2024.
Australian Strategic Materials is an ASX-listed, emerging vertically integrated producer of critical metals for advanced and clean technologies. The company currently embodies a “mine to metals” strategy in order to extract, refine and manufacture high-purity metals, alloys and powders, supplying direct to global manufacturers in clean energies, electric vehicles (EV), aerospace, electronics and communications.
The company’s Dubbo Project is located near the Australian town of Toongi, about 25km south of the township of Dubbo in central-western NSW and 400km northwest of Sydney. The project is reported to be construction ready, with all major permits approved and represents a world-class deposit that will provide NdPr oxide, terbium oxide and dysprosium oxide.
It is the company’s belief that over the long-term, the materials produced from the project will be utilised for refining into critical metals at ASM’s proposed metals plants, the first of which is in South Korea. The Korean Metals Plant officially opened in May 2022 located about 115km south of the South Korean capital city of Seoul.
Images: Australian Strategic Metals Ltd
